Bridge Loans Back At It Again…
What drives our success is the great real estate deals hidden in our existing home and multi-unit housing stock. Many areas are aging well, even with homes that were built years ago. When we find a house with a sound structure, with a plan to fix it up to rent or resale, we can make the short-term loans that banks won’t make to get the home repaired. Banks can’t take on the risks we can.
Also, we rely less on the credit of the borrower as it is the home’s value (the loan’s collateral) that ensures the loan is repaid.
A recent rental rehab project in Appleton is a case in point.
- A single-family home of 1,100 square feet, with a lot of work needed before it could be rented.
- A good location that supported the after-repair-value. The repairs would bring the home up to par with a typical home in the area.
- A real estate investor who could not get his deal approved for a traditional bank loan.
- A good plan to renovate the home.
- The potential to get a traditional refinance once the rehab was complete.
Our loan was large enough to buy the house and make all the repairs. Meaning no out of pocket expenses for the REI. After just 4 months, the new owner fixed the property and got a tenant. At that point he was able to get a new loan, which he got. He used that new loan to pay our loan back.
We helped this real estate investor meet his goals, launch his rental, and improve the overall value of the area. A win-win for him, and his neighbors!